Key points
- Chatham Rock Phosphate will offer New Zealand shareholders one new share for every five shares held, priced at 36 cents per common share.
- The rights issue could issue up to 3.1 million common shares for gross proceeds of up to $1,116,000.
- Proceeds from the issue will be used for general working capital.
- Shares issued are subject to a four month statutory hold period in Canada and the placement requires acceptance by the TSX Venture Exchange.
Chatham Rock Phosphate Ltd. will arrange a rights issue to New Zealand shareholders in the ratio of one share for every five shares held, resulting in up to 3.1 million common shares, at a price of 36 cents per common share, for gross proceeds of up to $1,116,000. The proceeds from the rights issue will be used for general working capital. The common shares will be issued as a private placement pursuant to available prospectus exemptions under Canadian securities legislation but will be offered to New Zealand resident shareholders (and qualified investors residing in jurisdictions other than Canada) in the proportions noted above. Common shares issued pursuant to the rights issue will be subject to a statutory four-month hold period in Canada.
The private placement is subject to the acceptance by the TSX Venture Exchange.
